Analysts predict larger-than-expected Q3 loss for Sanderson Farms
August 23, 2011
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Sanderson Farms shares dropped 4 percent on Monday as an analyst predicts the poultry producer's third-quarter loss will be bigger than Wall Street's forecast due to falling chicken prices and higher feed costs. Jefferies analyst Jeff Farmer estimates Sanderson will lose $1.25 per share in the quarter, compared with Wall Street's expectations for a loss of 86 cents per share, reports the Associated Press.
Farmer said that the Wall Street estimate is likely to change for the worse before Sanderson Farms reports its third-quarter results this Thursday. However, he reaffirmed a "Buy" rating and $55 price target for the Laurel, Miss., company, however, since "Our work suggests that chicken prices have likely troughed — historically a bullish sign for SAFM shares."
Source: Associated Press, MSNBC
